$1B VF development pact with Plenty

Added on 21 February 2023

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Realty Income (NYSE:O) has formed an alliance with vertical farming company Plenty Unlimited to spend up to $1B on acquiring properties and providing development funding to locations that will house Plenty's indoor farms, the companies said Tuesday.

The properties will be leased to Plenty under long-term net leases.
Furthermore, the net lease REIT has agreed to buy the land and provide development funding for the first farm of Plenty's indoor vertical farm campus near Richmond, Virginia.
"Our entry into agriculture technology provides another potential growth opportunity for our company," said Realty Income President and CEO Sumit Roy. "Over time, we aspire to expand our collaboration with Plenty internationally in markets of mutual interest."
The move comes after Realty Income (O) said On Dec. 20, 2022, that it will buy up to 185 single-tenant and industrial properties from CIM Real Estate Finance Trust (OTCPK:CMRF) for around $894M in cash. The former is slated to publish its Q4 results after Tuesday's market close.